The US Division of Protection (DoD) has awarded titanium metallic and significant supplies firm IperionX (ASX:IPX,NASDAQ:IPX) a contract for as much as US$47.1 million in funding.
The strategic partnership will give attention to strengthening the US Protection Industrial Base by accelerating the event of a resilient, low-cost and totally built-in US mineral-to-metal titanium provide chain.
The DoD and IperionX will put a mixed US$70.7 million into the endeavour, which is able to contain a two section growth program that may happen over a interval of two years.
Beneath the preliminary section of the deal, the DoD will present US$5 million by the Industrial Base Evaluation and Sustainment program, whereas US$1 million might be contributed by IperionX.
The funds might be used to advance the Tennessee-based Titan important minerals undertaking to shovel-ready standing.
“For too lengthy, American trade has been reliant on foreign-controlled provide chains for this important high-strength metallic. IperionX’s proprietary applied sciences, mixed with the Titan Challenge, supply a pathway for a resilient end-to-end U.S. titanium provide chain,” mentioned IperionX CEO Anastasion Arima in a Monday (February 17) launch.
The DoD will allocate the remaining US$42.1 million outlined within the contract over time; this cash will help vertical integration and increase titanium manufacturing at IperionX’s Virginia facility.
The Virginia facility is the primary 100% recycled titanium metallic powder facility.
The DoD’s help for IperionX comes after it accomplished market analysis geared toward discovering “sensible options” to the US provide chain for high-purity titanium sponge and titanium alloy metals, which at the moment depends closely on imports.
It solicited proposals from trade in 2024, and finally chosen IperionX.
US Geological Survey information exhibits that titanium sponge metallic was produced by one operation in Utah in 2024, with US producers of titanium ingot and downstream merchandise “counting on imports of titanium sponge and scrap.”
In the meantime, the US produced 100 metric tons of ilmenite, the first titanium ore, final 12 months.
“Titanium is a important materials for the aerospace, protection, automotive, house, and client industries, however its excessive price and reliance on international provide chains have restricted its broader adoption,” IperionX mentioned.
“(We) look ahead to working carefully with the DoD and trade companions to execute this landmark initiative.”
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Securities Disclosure: I, Gabrielle de la Cruz, maintain no direct funding curiosity in any firm talked about on this article.
